CBN Imposes ₦1 Billion Fines On Moniepoint And OPay Amid Stricter Fintech Regulations

The Central Bank of Nigeria (CBN) reportedly issued fines of ₦1 billion each to Moniepoint and OPay during the second quarter of 2024 as part of its intensified oversight of fintech companies.

According to TechCabal, which cited sources with direct knowledge of the situation, the two companies faced the steepest penalties among several fintech firms targeted by the CBN.

The fines were imposed following a routine audit of the fintech sector, which uncovered issues with regulatory compliance.

Sources familiar with the matter described the audit as a standard practice for financial institutions under the CBN’s jurisdiction.

In addition to Moniepoint and OPay, at least four other fintech companies were penalized, though the specific details of their fines remain undisclosed.

The CBN has increasingly turned to financial penalties to enforce regulatory adherence.

For example, in 2023, Nigerian banks collectively paid ₦678 million in fines.

Similarly, in October 2024, the CBN and the Securities and Exchange Commission (SEC) fined ten commercial banks ₦15 billion for various violations during the first half of the year.

Nigeria’s booming fintech industry had largely operated with minimal interference from the CBN.

However, the rapid growth of major players like OPay and Moniepoint, which now serve millions of users, has drawn heightened scrutiny.

OPay, for instance, reports a customer base of about 40 million, while Moniepoint processed over 5.2 billion transactions in 2023.

Although Moniepoint does not disclose customer numbers, its market presence is similarly significant.

This rapid expansion has raised questions about whether the regulatory frameworks for fintech companies, particularly those operating under microfinance bank licenses, are sufficient.

These licenses, originally intended to support small businesses, have allowed fintechs to scale rapidly, but concerns have grown over their ability to adequately protect customers.

Another key issue flagged by the CBN is compliance with Know Your Customer (KYC) requirements.

Earlier in 2024, the CBN imposed a two-month suspension on customer onboarding for several fintech companies, including Kuda Bank and Palmpay, due to non-compliance with KYC standards.

The affected companies were required to revamp their processes to meet regulatory expectations.

Moniepoint declined to comment on the matter. Meanwhile, OPay refuted the claims, stating, “We categorically refute the claims that OPay Digital Services was fined by the Central Bank of Nigeria to the tune of N1 billion for regulatory infractions.”

The CBN has yet to respond to request for comment.

KanyiDaily recalls that the Federal Government recently introduced a N50 charge on electronic money transfers of N10,000 and above, affecting customers of fintech platforms like Opay and Moniepoint.